North Carolina Down Payment Support Systems
Online Merchant account - These programs will be the Down Payment Assistance System and also the Mortgage Credit Certificate.
Also you buy a home between December 1, 2009 and January 1, 2009 and if you meet the requirements for one of these plans, you might also be eligible for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.
First, who is a First Time Home Buyer? There is a first-time Home Buyer someone who hasn't owned a home in the prior three years. It is the exact same qualifying definition for the $8,000 tax credit.
What is a Mortgage Credit Certificate and Who Qualifies?
A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with low and average incomes. The MCC takes this a step farther. An MCC “reduces your tax liability according to a portion of the mortgage interest that you pay.
In case you qualify for the MCC, it is possible to claim 20% of the interest you pay as a credit in your federal income taxes on your mortgage. It's possible for you to save around $2,000 on your taxes.
You may manage to combine this with the $8,000 tax credit should you qualify for 2009, for the MCC. This might reduce the tax liability of a buyer's by $10,000.
Who Qualifies for an MCC?
Who qualifies for an MCC is based on the purchase price of the home and also your income you're purchasing. Household income means the “gross income of the mortgagor and any other man anticipated to reside in the dwelling who's 18 years old or older.”
The income and house price limitations that apply in Durham, Orange and Chatham Counties are listed below.
MCC Income Limitations 1 Person $61,500 2 Individuals $61,500 3 Persons $70,500 4 Individuals $70,500
MCC Sales Cost Limits New House $220,000 Existing Dwelling $210,000
The purchaser just has to pay and the load would pay up to $8,000 of the remaining balance.
This program has stricter income limits than the MCC plan outlined above. Like the MCC program, it can be used in combination with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment help, however, can't be employed in combination together with the MCC. This is an either or situation.
The income and house price limitations that apply in Durham, Orange and Chatham Counties are given below.
Down Payment Assistance Income Limitations
1 Man $39,950 2 Individuals $45,650 3 Persons $51,350 4 Persons $57,050
Down Payment Assistance Sales Cost Limits New House $210,000 Existing Dwelling $210,000